Cyprus, Suzano price; new Suzano holds up in secondary; DP World talks four tranche deal

By Rebecca Melvin

New York, Sept. 17 – The emerging markets debt market welcomed two new issues on Tuesday. The Republic of Cyprus priced €1.5 billion of 2 3/8% 10-year notes on Tuesday at 99.780 for a yield of 2.4%, and Brazil’s Suzano Papel e Celulose SA priced $1 billion of 6% 10-year notes (BBB-) at 99.065 late Monday to yield 6 1/8%.

The Suzano deal was on the calendar and had completed roadshow meetings but was delayed by a couple of weeks due to market volatility in early September. The new Suzano paper saw good demand and was “holding up pretty well” in the aftermarket. It was quoted at 99˝ bid, 99.60 offered, by a syndicate source.

The Brazil-based pulp and paper company was “the first one out the gate after the summer lull” for the Latin America region, a New York-based market source noted.

Meanwhile, Dubai’s DP World Ltd. and DP World Crescent Ltd. was looking to put final prices on four tranches including a 10-year dollar-denominated sukuk, or Islamic bond, a dollar 30-year note, a euro-denominated eight-year note and a sterling-denominated 12-year note, according to a syndicate source.

During the session on Tuesday, order books were in excess of $2 billion for the sukuk, which was being guided to price with a yield of mid-swaps plus 185 basis points.

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